Blogging Bayport Alameda

July 1, 2019

Dancing on the (rent) ceiling

Filed under: Alameda — Lauren Do @ 6:01 am

There’s now a recommendation for the City Council’s consideration on the next step of real rent stabilization.  This would render the RRAC redundant and would give both landlords and tenants certainty moving forward.  From the staff report, the recommendations:

  • An annual general adjustment (AGA) based on 100% of the Consumer Price Index (CPI), with a 1% floor and 5% ceiling;
  • “Banking,” or the ability to carry-over any unused portion of the AGA to any subsequent year. However, any banked amount used in a given year cannot exceed 5% in addition to the AGA. Any banked amounts expires if the property is sold or a new tenancy is established;
  • A rent registry (initial registration and re-registration when there is a new tenancy); and
  • A petition process that utilizes a Hearing Officer for upward or downward rent adjustments.

I’m not sure how the rent registry differs from the information that is already collected annually on the how many bedrooms are in the unit and rent on that unit.  Perhaps this means that there will be an on-line way to fill out this information since it’s all paper based now.  I believe there’s a check box about whether the tenancy has changed as well, I can’t recall, but it seems like all this data is already collected by the City.  Now whether the City has actually done anything with this data, I don’t know.

I do like ARC’s suggestion about reverse banking particularly for units that went (and were authorized by the RRAC) waaayyy above 5% annually:

This regulation would apply only for the first few years of implementation of the AGA.  To allow tenants time to adjust to previous years’ rent increases, a landlord would be prohibited from increasing rents based on the AGA if the landlord had previously raised the rent by 5% or more for several years.  For example, assume that since rent stabilization was established in 2016, a landlord has increased rents by 5% each year (which, when compounded, translates to more than 15%).

 

4 Comments »

  1. There’s now a recommendation for the City Council’s consideration

    ———————————————

    How do these come about? Can they only come from a councilmember, or can they come from staff also? Can a citizen call for or otherwise place an item for consideration?

    Comment by dave — July 1, 2019 @ 6:54 am

    • Items that come before an elected body like City Council/School Board primarily come from staff with input from the elected officials. Elected officials can/do advocate for items to be bought up for consideration based on input from constituents as well as personal experience.

      Comment by Mike McMahon — July 1, 2019 @ 7:45 am

  2. Are there any studies or reports that purport that a positive public benefit will result from this regulation?

    Comment by Ed Hirshberg — July 1, 2019 @ 9:09 am


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